McKinsey Case Study Analysis

2553 Words Apr 18th, 2007 11 Pages
McKinsey Case Study Analysis � PAGE �1�

McKinsey Case Study Analysis

McKinsey and Co. Case Study Analysis

This paper applies the management by objective (MBO) philosophy of Peter Drucker to the case study analysis of McKinsey and Company (McKinsey). Founded in 1926 by James "Mac" McKinsey, a University of Chicago professor, the firm started as an accounting and engineering consultancy agency, which experienced rapid growth. This paper is a plan that outlines key aspects of MBO and how it will have both positive and negative effects when applied to the McKinsey case study.

Mac recruited experienced executives and trained them on an integrated approached he coined as the General Survey Outline (Mintzberg, et al., 2003, p. 319). Over
…show more content…
Regarding the leaders' responsibility, Drucker stated that the CEO is the only one who can align the internal environment with the external environmental to make certain that the organization understands the demands of the external environment [_market, customers, and competitors_]. Drucker's stated that the most important rule in business is to serve the consumer (Lafley, 2006). In addition, Drucker believed "in the power of strategic ideas and making clear choices…. [and that] the only way you can manage change is to create it" (as cited by Lafley, 2006, p. 7). Finally, as the founder of modern management, Drucker viewed organizations as a "means through which people find access to social status, community, achievement, and satisfaction [and the leaders as having] the responsibility to ensure that jobs are fulfilling and that individuals contribute fully" (as cited by Lafley, 2006, p. 7).

Positive Aspects of Strategies Applied

If McKinsey and company were to apply the management theory of Drucker they would identify several positive outcomes related to the management by objectives aspects. The company had experienced expansion into a global market and many changes in management and structure. The company was staffed by professionals with few levels of authority and, according to the case study, run more by consent than decree. The consultants worked within a matrix arrangement with a professional core and contractual element in its
Open Document